Transaction volumes increased by 22% year-on-year in July, while the transaction value saw a rise of 19% compared to the same month last year. The platform averaged 763 million transactions daily during the month, with an average daily transaction value of ₹96,383 crore.
The performance in July exceeded that of June 2026, when UPI handled 22.72 billion transactions worth ₹28.92 lakh crore. In June, transaction volumes had grown by 23% year-on-year, with transaction value up by 20%.
Experts noted that this latest achievement signifies a growing acceptance of digital payments beyond major cities, with smaller towns and rural areas increasingly utilizing UPI for daily transactions such as local purchases, bill payments, recharges, and money transfers.
“UPI is reinforcing the backbone of India’s digital payment landscape,” stated Anand Kumar Bajaj, Founder, MD & CEO, PayNearby.
He affirmed that the next growth phase will be propelled by deeper penetration in tier-2, tier-3, and rural markets, where UPI is transitioning from an occasional payment method to a daily transaction tool.
Reeju Datta, Co-founder of Cashfree Payments, mentioned that July represented the highest month on record for UPI in terms of both volume and value. He noted that this milestone was achieved despite July traditionally being a slower month for payments, lacking significant festive demand or quarter-end institutional settlements.
“The growth stems purely from organic, everyday transaction behavior rather than any seasonal or structural factors,” Datta remarked. He pointed out that the disparity between volume and value growth indicates an increase in smaller-value, high-frequency transactions. While transaction counts rose by 22% year-on-year, transaction value increased by 19%, reflecting how newer users and smaller merchants are shifting routine cash payments to digital channels.
Siddharth Mehta, Co-founder of Kiwi, commented that UPI’s latest figures underscore the growing confidence among consumers and merchants. He also suggested that the next evolutionary step could include products like Credit on UPI, enabling users to access short-term credit through familiar payment processes.
“As UPI adoption expands, the emphasis is shifting from how frequently people make payments to the methods they use, and credit on UPI could significantly broaden access to formal credit,” Mehta added.
With the festive season anticipated to commence in October, industry experts expect UPI adoption and transaction volumes to gather further momentum in the latter half of 2026.
